Minister Denies Using Powers

Press, Issue 32345, 10 July 1970, Page 11

Minister Denies Using Powers

(New Zealand Press Association) WELLINGTON, July 8. The Minister of Finance (Mr Muldoon) today described as nonsense an Opposition charge that he had used new powers under the State Advances Corporation Amendment Bill to “elbow aside” the Minister of Housing and refuse to increase S.A.C. loan limits.

Mr Muldoon said the Opposition spokesman on housing (Mr A. W. Fraser, St Kilda) had made this claim in a statement relating to the advice of the Ministers to the Auckland Major Home Builders’ Group that the limits would not be raised. I Mr Muldoon said the bill under which he was alleged to have taken the powers had; not even been passed by the' I House. He denied that the bill! gave him any new powers to 'take decisions on loan limits; out of the hands of the Mini-; ister of Housing. ; Mr Muldoon was speaking! i during a debate on an Opposi-i tion motion deploring the ; Government’s failure to provide adequate first-mortgage loan money for house building. Mr R. O. Douglas (Lab., Manukau), who gave notice of the motion, expressed concern that loan values had decreased over the years as prices and costs increased. The Under-Secretary to the Minister of Education (Mr Gair) said that in the last 10 years 45 per cent of the money spent on housing had come from Government : sources. The Minister of Housing 'said the building of more than :;7000 homes was financed by the State Advances Corporajtion last year.

Trustee savings banks were | being encouraged to lend more for housing, and insur--1 ance companies also had more money each year to lend for . housing. , “Governments are always , reluctant to raise loan limits,” ! he said. “Somehow, an increase always seems to drag • costs up.”